Archive for October, 2011

Do you think of labor in a factory to be a resource, or an asset? Do you believe that it should be ‘every man for himself!’ or do you believe in community being worth investing in? A pure capitalist would view labor as a resource, to be exploited to the utmost. A civic minded person believes that the community is valuable, and well worth investing in. Pure capitalism is self-destructive, as we have witnessed, because all of the wealth ends up in the hands of a few, and the economy comes to a halt, because no one can buy anything.

Part of the reason that the government has grown so large is because the community has had to band together to deal with the consequences of our capitalist society, which aims to use people up and throw them away. If employers took care of their employees as if they were an asset, an investment in training, experience, and knowledge accumulated over time on the job, than government would not be needed to redistribute the wealth through taxation. Health care, retirement, housing, all would be affordable, and available to all.

Every one wants a bigger slice of the pie. Even though the pie is not getting larger, and there are more people wanting a slice. Taking some from somebody else to have more for yourself is called greed. Greed has betrayed capitalism in the United States, pushed rational thinking aside, and driven us right over the edge. Instead of investing in the future, to assure that the future is the one that we desire, we have been enticed to spend everything, and more, right now. In return, our jobs have been outsourced overseas, our taxes are buying less and less services, and everything is horribly expensive.

Only huge, economy-wide growth, on a scale never seen before, can pull us out of an economic implosion. Asset deflation is likely to set in, as prices drop, values decrease, and people have no money to spend. Deflation scares the wealthy more than anything else, because it steals away their wealth even through locked vault doors. To avoid another Great Depression, a new set of rules are needed.

Investment has got to be with the intent of value increasing over the long term, not in order to pay today’s bills. Cash dividends to stock holders is the single most damaging policy of all modern business practices. It robs the future to allow luxury for a time, and corrupts the process of management. Stock should increase in value, and be split, to reward its owners, as the company becomes more and more valuable. But that can’t happen when the profits are being funneled into cash to pay to stockholders.